Special Correspondent :
Instead of gas price hike, the government is going to subsidize Tk. 3100 crore to the distribution companies against import of Liquefied Natural Gas (LNG), which ultimately will be supplied to the clients, Bangladesh Energy Regulatory Commission (BERC) said on Tuesday.
This move apparently gives an impression that the government is not keen to hike gas price right now as the next parliamentary election is appearing nearer.
BERC chairman, however, didn’t comment while replying to a question in this regard.
“The initiative of gas price hike followed submission of proposals from distribution companies last June. It was necessitate as the cost of import, production and supply went up in recent months resulting to incurring of huge loss by the distribution companies. But, taking into consideration the overall developments, BERC decided not to hike gas price at consumer level now,” said Monowar Islam ndc, Chairman of the Commission, at a press conference held at BERC office in the afternoon yesterday.
Meanwhile, the BERC called on Prime Minister’s office last week where they were asked to calculate potential loss in the next couple of
months by distribution companies if gas price was not hiked.
On this backdrop, the BERC came up with the announcement that the gas price will not be hiked.
“The government will provide subsidy from its current fiscal’s budget,” Monowar Islam said.
He said cash subsidy will be required Tk 3100 crore to makeover the potential loss of the distribution companies.
“Therefore, there will be no problem,” said BERC member Md. Abdul Aziz Khan.
Meanwhile, the duty has been withdrawn by the National Board of Revenue for import of LNG, which reduces the cash subsidy requirement significantly, he said.
He said total loss of the distribution companies aggregated to Tk 7300crore.
Among others, commission members Rahman Murshed, Mahmudul Huq Bhuiyan and Md. Mizanur Rahman were present at the press briefing.
Instead of gas price hike, the government is going to subsidize Tk. 3100 crore to the distribution companies against import of Liquefied Natural Gas (LNG), which ultimately will be supplied to the clients, Bangladesh Energy Regulatory Commission (BERC) said on Tuesday.
This move apparently gives an impression that the government is not keen to hike gas price right now as the next parliamentary election is appearing nearer.
BERC chairman, however, didn’t comment while replying to a question in this regard.
“The initiative of gas price hike followed submission of proposals from distribution companies last June. It was necessitate as the cost of import, production and supply went up in recent months resulting to incurring of huge loss by the distribution companies. But, taking into consideration the overall developments, BERC decided not to hike gas price at consumer level now,” said Monowar Islam ndc, Chairman of the Commission, at a press conference held at BERC office in the afternoon yesterday.
Meanwhile, the BERC called on Prime Minister’s office last week where they were asked to calculate potential loss in the next couple of
months by distribution companies if gas price was not hiked.
On this backdrop, the BERC came up with the announcement that the gas price will not be hiked.
“The government will provide subsidy from its current fiscal’s budget,” Monowar Islam said.
He said cash subsidy will be required Tk 3100 crore to makeover the potential loss of the distribution companies.
“Therefore, there will be no problem,” said BERC member Md. Abdul Aziz Khan.
Meanwhile, the duty has been withdrawn by the National Board of Revenue for import of LNG, which reduces the cash subsidy requirement significantly, he said.
He said total loss of the distribution companies aggregated to Tk 7300crore.
Among others, commission members Rahman Murshed, Mahmudul Huq Bhuiyan and Md. Mizanur Rahman were present at the press briefing.
